Chapter 688 Mobile Phone Market

"Honey, it seems we made too much money this year."

At the end of September, Song Yanxi began to count the assets for the family.

Not to mention the more than 10 billion net profit they have every year, the rise of overseas stocks alone has made them a lot of money.

In particular, Nvidia has started a surge mode, and it can't be stopped at all.

This made Chen Pingsheng, who originally planned to cash out slowly, want to wait for another year or two.

Anyway, he is not short of money now.

"This is indeed a bit unexpected, but it also shows the importance of the AI ​​industry. Both the capital market and the world are very optimistic about it."

"Honey, didn't you think about making AI mobile phones before? Maybe our family can buy a large mobile phone factory next year."

"I do have this idea."

It is already very difficult for new players to squeeze into the mobile phone track. Without any core technology, it can be said that they will die without a doubt.

Just look at Mrs. Dong who made mobile phones before, and 360 including Ali.

Which of these people is not calling the shots in the business world, and they are all disappointed in the end.

Chen Pingsheng wanted to do it mainly for two reasons. One is that Tengfei AI invested more than 80 billion this year.

In the past seven years, he has invested a total of 150 billion, and he has also invested hundreds of billions in solid-state batteries in the past seven years.

No domestic large companies can compare with these two core technologies.

In addition, there are only a few core technologies for mobile phones. Android and Apple systems still dominate the two major camps in the global mobile phone market.

In addition, there are Qualcomm chips and Samsung screens.

These are the core technologies that make up a smartphone. The remaining components, assembly, including debugging, etc., all rely on the company's own business management capabilities.

There is no doubt that Chen Pingsheng's advantage in industrial large companies is still very obvious.

In addition, the future core technology of the mobile phone sector is AI, and he obviously has a greater advantage in this area.

In addition, he has Tengying Entertainment, Tengyou Media, etc.

It is entirely possible to establish a global mobile phone brand in the next two to three years.

He did it as soon as he said it, and he also regarded this as the top priority of the group.

On October 1, National Day, Chen Pingsheng took his wife Song Yanxi and his two children, the big brat and the second brat, to visit major domestic mobile phone manufacturers.

Such as Xiaomi, OPPO, Huawei, etc.

In addition to visiting, he would also ask people one by one and consult these seniors in the mobile phone industry.

According to his idea, he originally planned to directly acquire a domestic top five mobile phone brand.

For this reason, he also offered a full acquisition price of 150 billion to the Blue and Green Factory.

He made mobile phones entirely based on the AI ​​technology he currently has, including solid-state batteries.

With these two technologies, it is enough to have a place in the future mobile phone market.

There are only these two major mobile phone manufacturers that may be sold in China.

Unfortunately, the acquisition was not negotiated.

Chen Pingsheng simply started from scratch, transferred a large number of senior management from the group, and also extracted tens of thousands of senior R&D engineers.

In Jinshan, a wholly-owned subsidiary of Tengying Group named Tengfei Mobile was established.

Many large manufacturers have just entered the mobile phone industry, and generally they are OEMs first.

Trying to get the maximum benefit at the lowest cost.

Of course, this is also the best way to reduce risks.

Chen Pingsheng will definitely not do this.

He didn't hesitate. Since he did it, he had to do it well.

The money-spending part was also arranged clearly.

On October 12, Jinshan announced an investment of 13 billion yuan in the Magic City to build a mobile phone super factory.

With the management experience of Tengfei New Energy Super Factory, this part is not difficult for them.

On October 15, it was announced that it would invest another 22 billion yuan to build the Ecological Lake Global R&D Center of Tengfei Mobile Phones.

After completing the planning and construction of the super factory and R&D center.

On October 18, it was announced that in the other three super first-tier cities in China, each invested 8 billion to establish a branch R&D center.

If you want to make technology products, core technology is the most important.

After pulling up all the R&D teams, he announced on October 21 that he would spend 13 billion to buy all the Meizu mobile phones including the team from Geely.

This is also the earliest domestic independent smart phone brand. Before 2010, it was second only to HTC in Taiwan.

Unfortunately, in the subsequent smartphone war, it was restricted by the chaotic internal management and fell behind step by step.

Unlike Luo Yonghao, Chen Pingsheng does not need financing at all, and does not need to worry about the turnover in the past three years.

He can use three to five years to do this to the extreme.

The starting point of everything is to become one of the top five mobile phone manufacturers in the world in the future.

Even further, it will become the existence second only to Apple and Samsung.

It is too difficult to say that it is too difficult to surpass. Surpassing is not only about sales.

The more important thing is profit.

Apple's annual net profit is over 100 billion US dollars, and Samsung Electronics' profit in 2023 is about 80 billion yuan.

Samsung is the world's number one in sales, and its profit is more than ten times that of Apple. They are not at the same level at all.

Let's put it this way, if Apple wants sales data, it will issue Apple mobile phones worth 2,000 or even 3,000 yuan.

It can easily surpass Samsung, and there is no opponent in the same level.

Profit is the final data to measure a company, and it is also the most critical data, which determines the future market value.

In the global mobile phone market, Apple still dominates the market.

Last year, the total profit of the global mobile phone market was 120 billion US dollars, and Apple took 90 billion US dollars.

It accounts for nearly 90% of the entire industry.

This is unimaginable in any industry, and only in the technology industry can such a monopoly occur.

Within five years, he certainly dare not think about surpassing Apple, and he dare not think about it in the next ten years.

Being able to do the same as Samsung is already an unimaginable success.

In October alone, he announced the start of the mobile phone business, and a series of actions far exceeded the expectations of the same industry.

Directly spending 70 billion to do this, he is also a model of domestic money.

Chen Pingsheng has never believed in the idea of ​​​​small bets for big gains. He basically invests in big bets for big gains.

The same is true for technology products. Car manufacturing relies on the investment of the entire industry chain far exceeding that of peers.

It will naturally be the same for mobile phones.

This month, he cashed out all his 1% stake in Google and got 16.5 billion US dollars.

That's about 115 billion RMB, which he used to develop Tengfei Mobile Phone.

He originally planned to directly acquire a big brand, but these people refused to sell it to him, so he had to spend hundreds of billions of funds to start his own business.

In addition to the super factory, buying Meizu mobile phones, and building R&D centers in the four super first-tier cities.

There is another most important thing, which is to build offline mobile phone sales channels.

This is also the most time-consuming.

Whether it is OPPO or vivo, they rely on offline channels that are blooming everywhere to firmly occupy the top five domestic mobile phones.

This is also the main reason why it is difficult for large manufacturers to create a new mobile phone brand. To put it bluntly, it is particularly easy to build a mobile phone.

Find Qualcomm for chips, Android for systems, and OEM for assembly.

These three things together don't cost much money. The key is to build offline sales channels if you want to sell well.

If you want to be like Xiaomi, the asset-light Internet sales model is completely unworkable.

This road is directly locked by Xiaomi.

Before the mobile phone brand was established, it was impossible for channel franchisees to be willing to join.

After it was established, the franchise model would also lead to the sharing of profits, and eventually the cost advantage could no longer be obtained.

Xiaomi, which once sold mobile phones for 1999 yuan on the Internet with light assets, had an absolute price advantage.

Now Xiaomi Home is everywhere, and this advantage is pitifully rare.

It can only be said that the operating costs of offline stores are also all spread on mobile phones.

This is also the main reason why Xiaomi is getting more and more expensive.

He has already invested 70 billion yuan, and the remaining 45 billion yuan is all research and development funds for the next one or two years.

At the beginning, the sales channel could only be built by himself, and Chen Pingsheng took out 10 billion yuan.

To start the Tengfei mobile phone sales network in advance, to put it bluntly, is to open offline channel stores.

Based on the investment amount of 500,000 yuan per store, he can open 20,000 stores at one time.

No mistake, one song, one post, one content, one 6, one 9, one book, one bar!

It sounds like a lot, but if you think about the mobile phone stores in every town of the Blue and Green Factory, you will know that these 20,000 stores are just average.

Mobile phone stores, the first step of investment is mainly concentrated in first-tier cities.

Only by doing well in first-tier cities can we rely on the franchise model to open stores in all major towns in the future.

Without looking at other things, just looking at his current amount of funds, you can understand why it is difficult to enter the mobile phone industry.

Without tens of billions of foundation, Xiaomi and the blue and green factories can easily crush you.

He took hundreds of billions to have a place in the future.

Not to mention that Tengying Group has accumulated so much super factory management experience in the early stage, as well as AI technology including solid-state battery technology.

The only weakness is the system and chip.

These two areas can be completely compensated by Android and Qualcomm.

He has been developing his own AI system. I don’t know if there will be a successful day in the future, but it is obvious that if this step is taken, it will be of great significance.

If Tengfei mobile phones are fast, they can be made in just a few months.

Chen Pingsheng does not intend to do that. He plans to use one to two years to officially launch his Tengfei mobile phone.

Either not to launch it, or to launch it must be a mobile phone that truly has core technology and can be a hit in the market.

After all, there is no shortage of mediocre mobile phones in China.

After digesting all of Meizu's mobile phone technologies, it relies on the four R&D centers it has established to cultivate core technologies in the mobile phone field.

More importantly, it applies all of its own AI technology, solid-state battery technology, etc. to new mobile phones.

Then, through the investment of over 10 billion yuan in super factories, it completes the perfect matching and assembly of mobile phone components.

All of this takes time.

He is not as anxious as other large companies, mainly because the capital sector does not need to borrow money from others, let alone listen to others' advice.

Put aside all short-term interests and only pursue long-term benefits in the future.

This is the benefit of own funds.

Just like selling a house, after buying the land, he can hoard it for seven or eight years before selling it.

Just wait for the best housing price period.

The same is true for mobile phones. A series of major investment directions were announced in October.

Then he disappeared, as if he had not done it at all.

Only those who know it understand that the giant ship of Tengying Group has already started.

Just like when he built cars, he spent the most money, and after he came out slowly, he secretly surprised everyone.

He can quickly use money to cover the entire industry field of Tengfei Mobile Phone, but the technical sector includes team integration, establishment of offline channels, development of proprietary technology, etc.

It takes time.

The money he prepared for mobile phones is about 160 billion yuan, and now 125 billion yuan has been invested, and another 35 billion yuan will be invested in the future.

The reason why he doesn’t need to invest too much is that Tengfei AI has accumulated the most important AI technology resources.

It is still calculated independently. You must know that AI is a strategic technology that he invests 30 to 40 billion yuan every year.

If you add this money in, the annual R&D cost is beyond imagination.

Not to mention the solid-state batteries that he has accumulated almost.

In terms of batteries, he will be the one who has the longest standby time in the future, and there will be no other people.

The accumulation of more than 100 billion yuan in investment in seven years is definitely not a joke.

With these two trump cards, it is enough for him to gain a foothold in the market.

It is impossible to be the first in everything, and everyone has their own advantages.

Just like Apple will not release a thousand-yuan phone.

No one can surpass Samsung in terms of screens.

It has been accumulating research and development since the 1990s, and has lost tens of billions of dollars for ten years. How can it be surpassed just by saying it can be surpassed.

With two core trump cards of his own, plus other first-class technologies, it is definitely enough for him to pry open the current mobile phone market.

After investing in mobile phones, he will not make any big moves in the next two or three years.

It must be digested successfully before looking for the next growth point of the group again.

Otherwise, blind investment is dangerous, which will increase the risk of funds infinitely.

At least he is still free of financial pressure now.

He still holds 1% of Microsoft's shares and 4% of Nvidia.

In addition, his current company can generate a stable net profit of 18 billion every year.

It is enough to ensure that he can promote existing major projects, including core technologies, without pressure in the next three years.

In three years, the technical accumulation of his entire group will definitely reach another new height.

As for the development of the two mountains of Jinshan, including the customization of the world's largest ocean cruise ship, there will be no pressure for him.

He has the funds to complete it independently.

Since he invested hundreds of billions in the mobile phone industry, more and more people have come to him for cooperation, and even asked him to acquire his company.

Unfortunately, they were all rejected by Chen Pingsheng.

He also directly announced that there will be no more major project investment in the next three years.

Everyone can understand, after all, he has invested too much money this year.

Whether it is building the world's largest cruise ship or the development of a six-star hotel between the two mountains, including the current investment of hundreds of billions in mobile phones and the acquisition of Wanda Plaza.

Any action here cannot be completed without tens of billions.

He did it all within a year, and he can only rest or even recuperate in the next three years.

Fortunately, he has enough funds, so he can complete everything within a year.

The most important thing is his AI technology, which has to invest 30 to 40 billion every year. With this heavy burden, he can only rest for three years.

The days are long, and it's November in a blink of an eye.

Tengyou Media has reached a market value of 500 billion yuan, becoming the first short video entertainment stock in China.

This is equivalent to pulling the entire entertainment industry up against the trend.

And the market value of Tengying Entertainment has also recovered to hundreds of billions.

He has more than six companies with a market value of over 100 billion yuan.

They are Lujiao Coffee with a market value of 16 billion US dollars, Tengde Times with a market value of 350 billion yuan, and Tengying Entertainment with a market value of over 100 billion yuan.

And Tengfei New Energy with a market value of over 420 billion yuan, in addition to the unlisted Wanda Plaza and Tengchao Commercial Management.

The group has become incredibly strong this year.